Spain causes domino effect: global collapse in olive oil prices

The price of olive oil appears to have fallen sharply internationally following the crash.”unprecedented“Price, as reported by the Scientific Society of Encyclopedists of the Olive Tree (4E) in a statement.

Company President Vasilis Zabunis: believes that the state should intervene in the sector. “It is more necessary and urgent than ever for the state, in cooperation with all stakeholders, to take action to stimulate the consumption of olive oil in the domestic market and for export. Only returning demand to normal pre-crisis levels can help. stimulate the recovery of producer prices.

One of the obstacles liquid gold faces is its competitiveness with other seed oils that are much less expensive than olive oil. In addition, media such as “Epirus Gate‘ highlight the importance of government intervention in this sector, which should support producers affected by drought through regulation of the Greek Agricultural Insurance (ELGA).

“At the same time, and also because no one guarantees a quick return to normal climatic conditions, Investments in local projects must begin to conserve and use water efficiently. These unprecedented crisis conditions make the existence of the National Olive Council more necessary than ever,” they say.

It should be noted that due to bad weather conditions in Spain, the world’s largest producer of olive oil, almost 1.5 million tons have been lost in recent years. As a result, prices for Spanish olive oil have skyrocketed. Its consumption decreased by 30% and 40%.

However, with the advent of a new campaign Prices are expected to return to previous levels. According to 4E in a press release, production is forecast at 1.4 million tons in Spain, 3.2 million tons worldwide and prices falling to 5.0-5.5 euros per kilogram. In addition, they also recommended that producers “sell and regret” when prices were in the range of 8.0-9.0 euros per kilogram with constant consumer interest.

In general, in most shopping centers in Spain, Portugal and Greece, prices are around 5.0-5.40 euros per kilogram. In Tunisia and Turkey they are slightly cheaper: 4.80-5.20 euros per kilogram and 4.25 euros per kilogram, respectively. Meanwhile, in Italy the price is about 7.8 euros per kilogram. Now we just have to wait.”that markets will find a new level of balance between olive producer, industry and consumer“concludes in his article”Epirus Gate‘.